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It stands for the ‘Living Away From Home Allowance’ and is an Australian Tax Office (ATO) allowance that can be provided through employers to help their employees cover the additional costs of relocating and living away from their usual place of residence for employment.
LAFHA allowances mean you pay less tax which increases your take home pay. For example, an annual salary of $100,000 can mean an extra $9,400* per annum in additional take home pay with LAFHA applied. LAFHA lets you:
*This example is based upon averaged amounts.
Please note: Each individual’s circumstances are different and will therefore deliver different results.
The broad criteria for eligibility is that the employee is incurring additional expense, is relocating for a temporary period of time and has the intent to move back to their original place of residence. The allowance can apply to:
The following are some of the criteria which may be applied to assess whether you are eligible for LAFHA - please use this as a guideline only, and let us help you fully assess your eligibility.
We recommend you visit www.lafha.com.au and fill in the Free Assessment form - and you will be provided with a free initial assessment explaining whether you meet the criteria for LAFHA and if so, an indication of the financial benefits to you.
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